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Fortescue launches High Court appeal

Andrew Forrest says no shareholder lost money over FMG's statements and there have been no complaints.

Andrew O'Connor: ABC News

West Australian iron ore miner Fortescue will launch a High Court appeal against a Federal Court verdict that it made misleading statements to investors.

The company's chief executive Andrew Forrest announced the company's decision to appeal at a press conference in Perth and a short statement to the ASX.

On Friday the full bench of the Federal Court upheld an appeal by the Australian Securities and Investments Commission, and overturned an initial decision by the court that Fortescue and its chief executive had not mislead investors with several public statements made regarding deals with Chinese companies.

Fortescue Metals Group claimed the deals were binding, but they were later revealed to be only agreements to negotiate.

If Fortescue's appeal to the High Court is unsuccessful, there is a possibility that Mr Forrest could be banned from being a director of the company he founded.

Mr Forrest says ASIC is pursuing him and his company in a "mean and vengeful way".

"I think there is no other justification. Their charter is to respond to complaints, and help those and defend those who aren't able to do so," he told a press conference in Perth.

"That was not this case. No one complained - there is on the record not one single complaint - and there is on the record that no shareholder lost money."

He also criticised the appeal court's decision and says he is confident the High Court will uphold his view.

"The appeal court took a view that because I couldn't name a price, but assured a particular member of the media that it would be competitive, that therefore I didn't have a price and that therefore, without a price, that contract couldn't be binding," he said.

"I am still comfortable with that statement and I look forward to pursuing that in the High Court.

"I look forward to clarifying that a price can be determined in a contract subject to future events both sides agree on, and that is how it's done in major business throughout Australia and throughout the world and that is common."